WOW | Cup Moscow by Changellenge | First round

• We are to describe, which way we have chosen to address all issues and to be done all tasks correctly. We are to provide clear vision of workings

Executive summary

• We are to set a strategy of making changes, managing changes, going through building relationships with clients of affluent segment based on positive win-win user experience.

Executive summary support

• We are to set a strategy of making changes, managing changes, going through building relationships with clients of mass affluent segment based on positive win-win user experience.

Segment strategy points

• Calculations of bank profit Bank profit estimations

• We are to set timeline of establishing and developing and launching our new products Timelines

• We represent our project team Team representing

Bank profit estimations

We set our approach on growth of non-banking services, such as P2P

transactions, payments money transfers from 25-36% annually.

Another opportunity we see in internet aquiring, estimated annual

growth 28%. Finally we are to focus on improving level of personal

approach and cross-sales of traditional and non-traditional services

Sources EY Global consumer banking survey 2014, data provided by Alfa-bank

Expected inflation

rate for Russian Rouble

People are 18-34 y.o – heavy users of technology

Benefits presenting greatest engagements opportunities that customers would be willing to add accounts and

services, increase balances or pay a little more

People are 50+ y.o – good at

technology using but classical values still matters

People are 53+ y.o – Prefer

classics ways of communication and services

Average income

Affluent segment

Mass affluent segment

*Moscow, Saint-Petersburg, Tyumen, Khnanty-Mansiysk

** Other cities

Segment characteristics

Heavy users of technology

Good at technology, need classics

Prefer classics ways

of communication and services

% of population 12% 10% 15%

Male 53% 53% 48%

Female 47% 47% 52%

18-34 44% 27% 39%

35-49 29% 35% 35%

>50 27% 38% 36%

% Assets under management 18% 7% 7%

Expected GDP growth annuallyExpected growth of bank profit per Affluent and

Mass-affluent segments annually

To develop a segmented strategy for affluent and mass affluent

retail customers attraction and retention, and to provide for the increase of bank profit share in this segment from 40% to 55% by the end of 2017

Our preposition contains communication strategy with Affluent and Mass

Affluent segments., new products to establish new markets: mobile e-

wallet supports NFC, based on API 2gis and web portal Gosuslugi, internet-

aquiring service timelines of Affluent and Mass Affluent communication strategy.

Heavy users of technology

Good at technology, need classics

Prefer classics ways of communication and services

Invests in your financial good being 85% 61% 74%

Provides a plan to help you reach financial goals

84% 62% 73%

Always seek for smth new 83% 60% 78%

Rewards needed 77% 59% 74%

Provides high average volume of deals 81% 53% 62%

Average share in income 74% 47% 59%

Percentage reflects those customers, who would be willing to increase engagement if their provider of services

Percentage reflects share of those customers, who would be defined as Affluent and Mass Afflunt clients

Inner drivers External drivers

Banking business drivers for future

Conclusion

The mobile and online payments, bln of USD

“Peer to peer” payments, and exchange transactions with no bank account

Sources

EY Global consumer

banking survey 2014,

data provided by Alfa-

bank, The “THE FUTURE

OF PAYMENTS: 2014

report” by Business Insider

351 432

587 624

744

342 383

460 500

555

263 287 294 325 333

0

100

200

300

400

500

600

700

800

2014E 2015E 2016E 2017E 2018E

Mobile in-store payments M-commerce Desktop

8 13

22

38

68

0

10

20

30

40

50

60

70

80

2014E 2015E 2016E 2017E 2018E

P2P payments, and exchange transactions

2017 Estimated profit in share of 55% of full population We have to main trends in money transactions: decreasing in

share of cash payments. Average, we see that main point of

payments are food and Personal care 28.2 %, 7.2% as for Auto

and vechicals, 7,6% general merchandise. So, we need a tool to

do all payments safe, fast and simple, we apply to developing e-

wallet based on NFC-technology and internet-acquiring tools to make restaurant transactions.

Line of business

Average monthly operational income, mln. RUR

Affluent Mass Affluent Mass Grand Total

Commission income

Passives

Loans (interest

Total

We see, that we are having instantly growing

segment in money service – payments It

raises about 30% annually globally up to 744

bls of USD in the end of 2017. So, it is a clear

to believe, that national markets do follow

this trend, so we expected 20-30% growth

in mobile and online payments in Russian

Federation. In despite of regulations in non-

cash transactions, we suppose that average

sum of stand alone transaction iis about

from 80-150%. It is under mpst of the limits provided by regulators.

Another major point is booming growth in

“peer-to-peer” transactions. It gives a raise

from 40% to 50% annually. That is huge

market, so we need to accept this challenge

creating product with such functions. It is

based on Alfa-bank cards and cards of other

banks. It makes an additional value to see

not only our current customer’s

transactions, but clients of the other banks, to see its concern

• Customer’s time

saving;

• Easy&safe&transpa

rent pricing and

banking;

• Individual approach

• Bank – everyday

assistant;

• Simple&clear bank

operations;

• Mobile features

Time saving Easy, safe and

transparent transfer of capital

Individual approach

Bank as an every-day assistant

Simple&clear banking

Mobile features

What our client needs

Wha

t seg

men

t-dr

iven

opp

ortu

nitie

s

the

bank

has

2

3

1

2 3

Discounting Deposits Credit

1

Multi-card

• All your cards inside the one

• You can choose which one you use

• You got a mobile app, where you can add card or see your statistics

AlfaWallet – safe and simple payment

Alfa Bank

Internet acquiring

What are our benefits

Provide a restaurant with a system of

online order and payment for the meals.

Provide a restaurant with an analytics about

its clients (gender, age, orders statistics) Profit from the

commission from the restaurant.

New clients will have an account

in Alfa-Bank because it is profitably and comfortable

What do we offer for restaurants

Cashback (about 10%) from each ride

What do we offer for taxi companies (only for clients)

Free ride to the bank

Internet acquiring

• Growth of profit because of extra-clients

• Declining of financial risks because of secure mobile technologies

• Modern payment channel

• More loyal clients

• Payments with Visa and MasterCard

• Participation in discount programs

• Safety according to the International standards

• More purchases through the Internet

Line of business



Commission income 358,57 0,16 648,61 0,29 1 363,44 0,60 2 266,49

Passives 889,24 0,45 666,14 0,34 701,20 0,35 1 983,18

Loans (interest 186,45 0,07 438,25 0,15 1 830,90 0,65 2 833,11

Total 1 434,26 0,20 1 752,99 0,25 3 895,53 0,55 7 082,78

Line of business



Commission income 365,38 0,18 660,94 0,32 1 136,75 0,55 2 078,62

Passives 906,15 0,50 678,80 0,37 584,61 0,32 1 818,79

Loans (interest 190,00 0,07 446,58 0,17 1 526,49 0,59 2 598,28

Total 1 461,53 0,23 1 786,32 0,28 3 247,85 0,50 6 495,69

Line of business



Commission income 351,05 0,19 635,02 0,35 893,59 0,49 1 815,55

Passives 870,61 0,55 652,18 0,41 459,56 0,29 1 588,61

Loans (interest 182,55 0,08 429,07 0,19 1 199,96 0,53 2 269,44

Total 1 404,21 0,25 1 716,26 0,30 2 553,12 0,45 5 673,59

2017

2016

2015

Developing a prototype of Alfawallet

Testing of

prototype of Alfawallet

Launch and

publication on

Google Play,

Marketplace, Itunes Store

Feedback and issues cheking




Feedback and

issues cheking.

Target results cheking




Feedback and

issues cheking.


Developing a prototype of app for multicard

Testing of

prototype of Alfawallet

Negotiations with mPOS vendors

Supplying of

mPOS equipment

Launch and

publication on

Google Play,


Feedback and

issues cheking.





Feedback and

issues cheking.





Feedback and

issues cheking.


Developing a prototype

of client-app and

customer app for internet aquiring

Testing of

prototype of

client-app and

customer app

for internet aquiring

Launch and

publication on

Google Play,


Feedback and

issues cheking.





Feedback and

issues cheking.





Feedback and

issues cheking.


Negotiations with Wheely



Feedback and

issues cheking.





Feedback and

issues cheking.





Feedback and

issues cheking.


Negotiations with

restaurants (Alfa-bank clients)



Feedback and

issues cheking.


Negotiations with

restaurants (not)

Alfa-bank clients)



Feedback and

issues cheking.





Feedback and

issues cheking.


1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 20174Q 2016

0

200

400

600

800

1970 1980 1990 2000 2010 2014

Restaurant industry Sales (in billions of current dollars)*

All adults,%

Look up locations or directions 67

Order takeout or delivery 52

Use rewards or special deals 50

Make a reservation 46

Look up nutrition information 42

Pay for your meal 24

Consumers who say they would be likely to use a smartphone for restaurant-related activities*

Provide a restaurant with a system of online order and payment for the meals.

Provide a restaurant with an analytics about its clients

(gender, age, orders statistics)

* National restaurant association: “2014 Industry Forecast”

Profit from the commission from the restaurant.

New clients will be attracted to the bank because they will feel support of Alfa-Bank

Taksik Gettaxi Uber Wheely

Safety

Ordering

Price (the more “white” – the lower is the price)

Comfort

Number of cities supported

The factor is great developed

The factor is bad developed So we can see, that taxi “Wheely” is the best company for collaboration with Alfa-Bank

Conclusion

Webmoney Paypal Yandex-money QiWI Alfa-wallet

Reliability

Simplicity

Currency

Possibility for credit

The factor is great developed The factor is bad developed

According to the needs of our clients, we should make an emphasis on the:

1) Reliability – safety of transactions

2) Simple , clear, transparent transfer of capital

3) Make an opportunity of payments in different currencies, because our clients can have a business abroad or they can make purchases abroad 4) Credit can be secondary developed, because our clients require less credit and this option cad be added further

Conclusion

Date post:	20-Jul-2015
Category:	Economy & Finance
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WOW | Cup Moscow by Changellenge | First round

Economy & Finance